Partnership becoming sole trader - basis period

Can we keep year end the same?

Didn't find your answer?

So we have a client who was in partnership with his sister. She passed away in May 2016.

Year end for partnership was 31/12

If we cease the partnership when she passes away he becomes a sole trader. Is his first BP therefore from May 2016 up to 5th April 2017 or is there anyway we can keep the year end as 31/12?

Replies (3)

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RLI
By lionofludesch
28th Jan 2018 14:42

So his basis period doesn't change if you don't change his year end.

But you will have to split the profits ante and post mortem.

Thanks (1)
PJ
By paulgrca.net
29th Jan 2018 13:04

Pretty basic stuff so basic in fact I am not going to answer it other than give you some advice - book yourself immediately on a basic tax course.

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Portia profile image
By Portia Nina Levin
29th Jan 2018 13:17

You should refer this to an accountant. They will be able to handle it with their eyes closed.

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